4 Approaches introduced by Malaysian Prime Minister to Encourage the Growth of Entrepreneurs and Local Businesses

In June 2011, Malaysian Prime Minister, Dato’ Seri Najib Tun Razak unveiled the 4 Approaches for Entrepreneurship Growth and to create a vibrant environment to cultivate more interest towards pursuing Entrepreneurship and to create competitive companies, products, services and Brands to compete on a global scale. We thought it would be a great recap of the 4 Strategies that was introduced by the Prime Minister in committing the government’s support towards Entrepreneurship.

Here is an abstract from the Prime Minister’s own blog at 1Malaysia.com.my which summarizes the Prime Minister’s intent to empower and to build a supportive, competitive and vibrant Entrepreneurial eco-system in Malaysia. We have slightly modified the article for our readers’ pleasure, highlighting main points mentioned by the Prime Minister and the launch of a business fund (Read until the end of the article).

PUTRAJAYA, Sept 22 (Bernama) — Prime Minister Datuk Seri Najib Tun Razak on Thursday unveiled four approaches for entrepreneurship development in the country to be more successful and viable.

(Entrepreneurs.my’s Comments: The 4 basic approaches that the Prime Minister described, tend to mirror the patterns of businesses that Tony Fernandes of AirAsia had launched in the past. The iconic budget airline and now Football and F1 teams owner’s concept of creating businesses could be traced to have very powerful branding elements, innovative business models and use a lot of Social Media and its Online Appeal to draw customers to their businesses – Hence, WHY this picture was used)

He said the 4 approaches are;

Introducing new ideas which are more creative

Inject innovations in business

Applying stronger and popular branding

Using websites to expand the market for products

“Nevertheless, we should not be disappointed for not being fully successful but we can already see the signs of success. What is needed is to increase successful entrepreneurs.

“We don’t want them to be merely small-scale businessmen but we want them to be regional and global champions whom we can be proud of,” he said when launching rural entrepreneurs’ carnival 2011.

Najib said among the approaches or new ideas that should be practised was to look at areas where the business competition was not that intense to the extent the margin or profit to entrepreneurs was negligible.

“If we look at many businesses, tens of shops will be selling almost the same goods. This makes our business is not that profitable.

“Profit is the basis to enhance and expand our business. When talking about entrepreneurship, it does not mean we just jump into it blindly.

“We want entrepreneurs who have the acumen to choose sustainable business that can flourish and have expansion prospects,” he said.

Najib said the move to link small-time businessmen, especially in rural areas, with the wider market via the “Kedai Runcit 1Malaysia” (1Malaysia Sundry Shop” concept, led by Mydin Mohamed Holdings Bhd, was a new idea that can yield big profit to retailers.

That is why, he said, the government encouraged networking so that the product of an entrepreneur was not only sold in the domestic market but also ationwide.

The Prime Minister said entrepreneurs must also inject innovation when producing their products as it could create new demand for the product.

Citing an entrepreneur who wanted to manufacture a new design liquefied petroleum gas cylinders which are lighter and durable, Najib said the product has big potential and can yield good profit.

“I want far-sighted entrepreneurs. I don’t want a generation of primitive mindset. If we hold to our old ways of thinking, we will not prosper (in life) and be successful in managing our sustainable business,” he said.

On branding, Najib said, it was important and be given attention because if a brand was accepted by consumers, it could give big profit to the entrepreneur.

“Branding has premium and value. (for instance) the cost of a product may be RM10,000 but with intensive branding, we can sell for RM20,000 to consumers,” he said.

Najib said entrepreneurs should also take full advantage of websites like the internet to sell their products.

He said the government had earlier launched the Rural Transformation Programme in Gopeng, a fresh initiative towards empowering the rural entrepreneurial sector.

He said the programme would function as a agro-food supply and agribusiness centre which links manufacturers and consumers countrywide.

This initiative was introduced to intensify market network for products produced by cottage industry entrepreneurs in rural areas, he added.

At the carnival launch, the Prime Minister announced RM50 million initial allocation under the Small-Scale Dynamic Entrepreneur Programme to help traders, particularly in rural areas.

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About Michael Teoh

Michael Teoh is a Malaysia Book of Records Holder for the 'Most Extraordinary Global Experience' for a Malaysian, where in 2011, he journeyed to 22 countries under a scholarship from the UK, to meet and work with entrepreneurs and NGOs. To date, he is a certified coach, trainer and internationally listed speaker, having spoken to and consulted both the public and private sectors on youth engagement, personal development and entrepreneurship.